Slew of target cuts crush Prada shares

Investors dumped shares of Italian fashion house Prada on Monday following an ugly earnings report, which prompted a slew of brokerages to slice their price target for the stock.

Hong-Kong listed Prada's stock slumped over 6 percent to HK$37.35 ($4.80), its lowest level in more than three years after the company warned of difficult market conditions in Asia-Pacific.

"The 44 percent drop in earnings comes as a surprise. There are concerns that they may not be able to maintain their profit margins unless they figure out a way to reignite customer interest," Jackson Wong, associate director, United Simsen Securities Limited told CNBC.

"A lot of brands are competing with similar products at much cheaper prices," he said.

On the mainland, an economic slowdown and crackdown on conspicuous consumption continue to take a toll on sales. Macau and Hong Kong sales have also taken a hit from the decline in Chinese tourist numbers.

Bernstein Research slashed its 12-month price target to HK$33 from $HK40, according to Reuters.